diff --git a/README.md b/README.md
index 0aaf5cdeb..9ed33ee39 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,7 @@ that's been made default from that version forward.
 * Ruby 2.2+
 * Rails 4.2+
 * Node.js 6.4.0+
-* Yarn
+* Yarn 0.20.1+
 
 ## Installation
 
@@ -42,9 +42,6 @@ You can also see a list of available commands by running `./bin/rails webpacker`
 Webpacker ships with two binstubs: `./bin/webpack` and `./bin/webpack-dev-server`.
 They're thin wrappers around the standard webpack.js executable, just to ensure that the right configuration file is loaded depending on your environment.
 
-A binstub is also created to install your npm dependencies,
-and can be called via `./bin/yarn`.
-
 In development, you'll need to run `./bin/webpack-dev-server` in a separate terminal from `./bin/rails server` to have your `app/javascript/packs/*.js` files compiled as you make changes. If you'd rather not have to run the two processes separately by hand, you can use [Foreman](https://ddollar.github.io/foreman). `./bin/webpack-dev-server` launches the [Webpack Dev Server](https://webpack.js.org/configuration/dev-server/), which serves your pack files on http://localhost:8080/, and provides advanced Webpack features, such as [Hot Module Replacement](https://webpack.js.org/guides/hmr-react/).
 
 ## Configuration
diff --git a/lib/install/angular.rb b/lib/install/angular.rb
index 98d165415..7d2dd7964 100644
--- a/lib/install/angular.rb
+++ b/lib/install/angular.rb
@@ -13,6 +13,6 @@
 copy_file "#{__dir__}/examples/angular/tsconfig.json", "tsconfig.json"
 
 puts "Installing all angular dependencies"
-run "#{RbConfig.ruby} ./bin/yarn add typescript ts-loader core-js zone.js rxjs @angular/core @angular/common @angular/compiler @angular/platform-browser @angular/platform-browser-dynamic"
+run "yarn add typescript ts-loader core-js zone.js rxjs @angular/core @angular/common @angular/compiler @angular/platform-browser @angular/platform-browser-dynamic"
 
 puts "Webpacker now supports angular and typescript 🎉"
diff --git a/lib/install/bin/webpack-dev-server.tt b/lib/install/bin/webpack-dev-server.tt
index 94f8eaa57..5ea4a6e1c 100644
--- a/lib/install/bin/webpack-dev-server.tt
+++ b/lib/install/bin/webpack-dev-server.tt
@@ -19,7 +19,6 @@ begin
   NODE_MODULES_PATH   = File.join(APP_PATH.shellescape, paths["node_modules"])
   WEBPACK_CONFIG_PATH = File.join(APP_PATH.shellescape, paths["config"])
 
-  WEBPACK_BIN       = "#{NODE_MODULES_PATH}/.bin/webpack-dev-server"
   DEV_SERVER_CONFIG = "#{WEBPACK_CONFIG_PATH}/development.server.js"
 rescue Errno::ENOENT, NoMethodError
   puts "Configuration not found in config/webpacker/paths.yml."
@@ -27,9 +26,10 @@ rescue Errno::ENOENT, NoMethodError
   exit!
 end
 
+DEV_SERVER_BIN       = "yarn run webpack-dev-server"
 newenv = { "NODE_PATH" => NODE_MODULES_PATH }
-cmdline = [WEBPACK_BIN, "--progress", "--color", "--config", DEV_SERVER_CONFIG] + ARGV
+cmdline = [DEV_SERVER_BIN, "--", "--progress", "--color", "--config", DEV_SERVER_CONFIG] + ARGV
 
 Dir.chdir(APP_PATH) do
-  exec newenv, *cmdline
+  exec newenv, cmdline.join(' ')
 end
diff --git a/lib/install/bin/webpack.tt b/lib/install/bin/webpack.tt
index f67e18030..3f0480ad1 100644
--- a/lib/install/bin/webpack.tt
+++ b/lib/install/bin/webpack.tt
@@ -5,10 +5,10 @@ require "shellwords"
 require "yaml"
 
 ENV["RAILS_ENV"] ||= "development"
-RAILS_ENV   = ENV["RAILS_ENV"]
+RAILS_ENV = ENV["RAILS_ENV"]
 
 ENV["NODE_ENV"] ||= RAILS_ENV
-NODE_ENV    = ENV["NODE_ENV"]
+NODE_ENV = ENV["NODE_ENV"]
 
 APP_PATH               = File.expand_path("../", __dir__)
 CONFIG_PATH            = File.join(APP_PATH, "config/webpack/paths.yml")
@@ -24,12 +24,12 @@ rescue Errno::ENOENT, NoMethodError
   exit!
 end
 
-WEBPACK_BIN    = "#{NODE_MODULES_PATH}/.bin/webpack"
+WEBPACK_BIN    = "yarn run webpack"
 WEBPACK_CONFIG = "#{WEBPACK_CONFIG_PATH}/#{NODE_ENV}.js"
 
 newenv = { "NODE_PATH" => NODE_MODULES_PATH }
-cmdline = [WEBPACK_BIN, "--config", WEBPACK_CONFIG] + ARGV
+cmdline = [WEBPACK_BIN, "--", "--config", WEBPACK_CONFIG] + ARGV
 
 Dir.chdir(APP_PATH) do
-  exec newenv, *cmdline
+  exec newenv, cmdline.join(' ')
 end
diff --git a/lib/install/bin/yarn.tt b/lib/install/bin/yarn.tt
deleted file mode 100644
index 5187824b2..000000000
--- a/lib/install/bin/yarn.tt
+++ /dev/null
@@ -1,11 +0,0 @@
-<%= shebang %>
-VENDOR_PATH = File.expand_path('..', __dir__)
-Dir.chdir(VENDOR_PATH) do
-  begin
-    exec "yarnpkg #{ARGV.join(" ")}"
-  rescue Errno::ENOENT
-    $stderr.puts "Yarn executable was not detected in the system."
-    $stderr.puts "Download Yarn at https://yarnpkg.com/en/docs/install"
-    exit 1
-  end
-end
diff --git a/lib/install/elm.rb b/lib/install/elm.rb
index 1cd307409..9bbf68f79 100644
--- a/lib/install/elm.rb
+++ b/lib/install/elm.rb
@@ -12,8 +12,8 @@
           "#{Webpacker::Configuration.entry_path}/hello_elm.js"
 
 puts "Installing all elm dependencies"
-run "#{RbConfig.ruby} ./bin/yarn add elm"
-run "#{RbConfig.ruby} ./bin/yarn add --dev elm-hot-loader elm-webpack-loader"
+run "yarn add elm"
+run "yarn add --dev elm-hot-loader elm-webpack-loader"
 run "yarn run elm package install -- --yes"
 
 puts "Updating Webpack paths to include Elm file extension"
diff --git a/lib/install/react.rb b/lib/install/react.rb
index 059ec0272..c6e2dc374 100644
--- a/lib/install/react.rb
+++ b/lib/install/react.rb
@@ -26,6 +26,6 @@
 copy_file "#{__dir__}/examples/react/hello_react.jsx", "#{Webpacker::Configuration.entry_path}/hello_react.jsx"
 
 puts "Installing all react dependencies"
-run "#{RbConfig.ruby} ./bin/yarn add react react-dom babel-preset-react prop-types"
+run "yarn add react react-dom babel-preset-react prop-types"
 
 puts "Webpacker now supports react.js 🎉"
diff --git a/lib/install/template.rb b/lib/install/template.rb
index 7029531b0..fa600347a 100644
--- a/lib/install/template.rb
+++ b/lib/install/template.rb
@@ -11,13 +11,7 @@
 directory "#{__dir__}/javascript", "#{Webpacker::Configuration.source}"
 
 puts "Copying binstubs"
-template "#{__dir__}/bin/webpack-dev-server", "bin/webpack-dev-server"
-template "#{__dir__}/bin/webpack", "bin/webpack"
-
-if !File.exist?("bin/yarn")
-  puts "Copying yarn"
-  template "#{__dir__}/bin/yarn", "bin/yarn"
-end
+directory "#{__dir__}/bin", "bin"
 
 chmod "bin", 0755 & ~File.umask, verbose: false
 
@@ -29,13 +23,13 @@
 end
 
 puts "Installing all JavaScript dependencies"
-run "#{RbConfig.ruby} ./bin/yarn add webpack webpack-merge js-yaml path-complete-extname " \
+run "yarn add webpack webpack-merge js-yaml path-complete-extname " \
 "webpack-manifest-plugin babel-loader@7.x coffee-loader coffee-script " \
 "babel-core babel-preset-env compression-webpack-plugin rails-erb-loader glob " \
 "extract-text-webpack-plugin node-sass file-loader sass-loader css-loader style-loader " \
 "postcss-loader autoprefixer postcss-smart-import precss"
 
 puts "Installing dev server for live reloading"
-run "#{RbConfig.ruby} ./bin/yarn add --dev webpack-dev-server"
+run "yarn add --dev webpack-dev-server"
 
 puts "Webpacker successfully installed 🎉 🍰"
diff --git a/lib/install/vue.rb b/lib/install/vue.rb
index 97a6f74b5..71adb8c41 100644
--- a/lib/install/vue.rb
+++ b/lib/install/vue.rb
@@ -10,6 +10,6 @@
 copy_file "#{__dir__}/examples/vue/app.vue", "#{Webpacker::Configuration.entry_path}/app.vue"
 
 puts "Installing all vue dependencies"
-run "#{RbConfig.ruby} ./bin/yarn add vue vue-loader vue-template-compiler"
+run "yarn add vue vue-loader vue-template-compiler"
 
 puts "Webpacker now supports vue.js 🎉"
diff --git a/lib/tasks/webpacker/yarn_install.rake b/lib/tasks/webpacker/yarn_install.rake
index 43e3d1431..fbb15f2eb 100644
--- a/lib/tasks/webpacker/yarn_install.rake
+++ b/lib/tasks/webpacker/yarn_install.rake
@@ -1,6 +1,6 @@
 namespace :webpacker do
   desc "Support for older Rails versions.Install all JavaScript dependencies as specified via Yarn"
-  task :yarn_install do
-    system("./bin/yarn")
+  task :yarn_install, [:arg1, :arg2] do |task, args|
+    exec "yarn #{args[:arg1]} #{args[:arg2]}"
   end
 end
diff --git a/package.json b/package.json
index 2bab1f128..2aa4a83ed 100644
--- a/package.json
+++ b/package.json
@@ -16,7 +16,7 @@
   },
   "scripts": {
     "test": "echo \"Error: no test specified\" && exit 1",
-    "lint": "node_modules/eslint/bin/eslint.js lib/"
+    "lint": "yarn run eslint lib/"
   },
   "repository": {
     "type": "git",